Market Trends of China Compound Feed Industry
This section covers the major market trends shaping the China Compound Feed Market according to our research experts:
Growing Inclination Towards Meat and Animal Protein
Growing demand for processed meat and protein diet due to a rise in household income levels would continue to drive the demand for animal feed from various livestock and poultry farms. According to the Organisation for Economic Co-operation and Development (OECD), in 2019 per capita pork meat consumption decreased to 29.3 Kg which was 31.2 in 2016. On the other hand, the per capita poultry meat consumption is rising annually. In 2016 poultry meat consumption was 11.6Kg which increased to 12.1Kg in 2019. There was significant migration from rural economies to urban centers, and central government agribusiness reforms were encouraging larger farms to replace traditional farming. According to the Food and Agriculture Organisation (FAO), in 2016 the poultry bird population was 6339.2 million which increased to 6384.5 million in 2018. The shift in livestock production and rising meat consumption will create demand for compound feed for animals during the forecast period.
Commercial Production Paving Way For Higher Export
Livestock production became more commercialized in the country and produces are more willing to pay for commercially mixed feeds compared to backyard producers. China's feed industry has become more diverse, while privately-owned companies are leading the way. The continuing rise in the production cost of feed is making the companies to increase focus on enhancing their efficiency in feed production. According to the Alltech feed survey, in 2019, China is one of the largest producers of compound feed in the world, with the production of around 168 million metric tons of which poultry is the largest sector accounting for nearly 90.5 million metric tons. Increasing feed production has created an attractive export opportunity in the feed segment. According to the ITC Trade, in 2016 the feed exports accounted for USD 999.9million which increased to USD 1,097.3 million in 2019. Viet Nam, Netherlands, and Indonesia are some of the export destinations for the Chinese feed with a share of 14.5%, 11.5% and7.7% respectively.
